Patanjali Ayurved’s inhouse monocarton unit takes root

In 2017, The Economic Times called Patanjali Ayurved Indian FMCG’s new ‘Bahubali.’ The Baba Ramdev-led FMCG company, which leverages its Bharatness, clocked Rs. 10,561 crores in revenue in FY16-17. This made it the fastest growing and second largest player in the FMCG sector after Hindustan Unilever at the time. However, Patanjali’s consumer business witnessed a decline in revenue of over 10% in FY17-18 at Rs. 8,148 crores. The company attributes the decline to the new Goods and Services Tax and its own weaknesses in distribution. Profits of the combined Patanjali entities declined by over 50% to Rs. 528.9 crores in FY17-18. Although some of the projected rapid growth has not yet materialized, Patanjali has kept adding consumer goods and distribution across the country. It has made significant investments in bringing its packaging in-house, beginning with monocartons at its Haridwar plant. Bringing packaging in-house can give it some leverage across the supply chain. Better control of costs, design and innovation, as well as compliances that are becoming a part of both FMCG product safety and packaging…

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